(September 7 – 14:35 ET) – Richmond Savings and Pacific Coast Savings — two of BC’s leading credit unions — say they have signed a Commitment to Merge Agreement. The two credit unions say the agreement is subject to development of a business plan, regulatory approval, and the support of at least two-thirds of voting members at each credit union. The membership vote will be held later this year.

“The Boards of Directors at both organizations believe this proposed merger represents an excellent fit and opportunity for the members and staff of our two credit unions,” note Bill Wellburn, chairman of Pacific Coast Savings and Terry McPhail, chairman of Richmond Savings, in a joint statement.

“Both organizations are community-based and share similar core values. We invest locally, and provide money, time and expertise to the communities and members we serve. Working together, we have the potential to become one of the strongest credit unions in Canada and to provide a wide range of services for the future,” Wellburn says.

“Both credit unions are financially sound. The proposed merger would further strengthen our competitive position, allowing us to better serve the financial needs of our members by larger investments in technology as well as the ability to provide competitive rates and services,” adds McPhail.

The credit unions say the would be no overlap with the merger. Pacific Coast Savings has 12 branches on Vancouver Island; Richmond Savings has 13 branches on the Lower Mainland. “There would be no downsizing or lay offs at the branch locations of either organization as a result of the proposed merger,” Wellburn says.

If approved by members, the merged credit union would operate as two divisions, with divisional head offices in both Richmond and Victoria. A new board would be established comprised of an equal number of elected directors from both divisions.

Richmond Savings and Pacific Coast Savings are, respectively, Canada’s third and fourth largest credit unions. Richmond Savings has over 80,000 members and assets totalling more than $1.9 billion. Pacific Coast Savings has over 100,000 members and assets totalling $1.3 billion.
-IE Staff